EXHIBIT 12
W. R. GRACE & CO. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS(1)(2)(3)
(In millions, except ratios)
(Unaudited)
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Net income attributable to W. R. Grace & Co. shareholders | $ | 256.1 | $ | 40.0 | $ | 219.7 | $ | 193.8 | $ | 76.3 | ||||||||||
Provision for (benefit from) income taxes | 102.9 | (61.6 | ) | 87.9 | 26.2 | 18.1 | ||||||||||||||
Equity in earnings of unconsolidated affiliate | (22.9 | ) | (18.5 | ) | (15.2 | ) | (17.8 | ) | (1.7 | ) | ||||||||||
Distributed income of earnings of unconsolidated affiliates | 2.8 | 6.3 | 10.9 | 0.5 | — | |||||||||||||||
Interest expense and related financing costs, including amortization of capitalized interest, less interest capitalized | 43.9 | 46.8 | 43.6 | 41.7 | 38.8 | |||||||||||||||
Estimated amount of rental expense deemed to represent the interest factor | 8.8 | 7.5 | 6.9 | 6.9 | 6.7 | |||||||||||||||
Income as adjusted | $ | 391.6 | 20.5 | 353.8 | 251.3 | 138.2 | ||||||||||||||
Combined fixed charges and preferred stock dividends: | ||||||||||||||||||||
Interest expense and related financing costs, including capitalized interest | $ | 45.0 | 46.9 | 43.6 | 41.3 | 38.9 | ||||||||||||||
Estimated amount of rental expense deemed to represent the interest factor | 8.8 | 7.5 | 6.9 | 6.9 | 6.7 | |||||||||||||||
Fixed charges | 53.8 | 54.4 | 50.5 | 48.2 | 45.6 | |||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 53.8 | 54.4 | 50.5 | 48.2 | 45.6 | ||||||||||||||
Ratio of earnings to fixed charges | 7.28 | — | 7.01 | 5.21 | 3.03 | |||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 7.28 | — | 7.01 | 5.21 | 3.03 |
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(1) | Grace did not have preferred stock from 2009 through 2013. |
(2) The 2012 ratio of earnings to fixed charges is below a one-to-one ratio. An additional $33.9 million in
earnings would be needed to attain a one-to-one ratio.
(3) Amounts have been revised as a result of our fourth quarter change to mark-to-market pension accounting.
See Note 1 to the Consolidated Financial Statements for more information.
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